IDEAS home Printed from https://ideas.repec.org/a/eee/rensus/v30y2014icp555-564.html
   My bibliography  Save this article

Environmental efficiency of investments in renewable energy: Comparative analysis at macroeconomic level

Author

Listed:
  • Cicea, Claudiu
  • Marinescu, Corina
  • Popa, Ion
  • Dobrin, Cosmin

Abstract

This paper aims to bring into attention the concept of renewable energy investments’ efficiency and to study one of the three concepts related to it, namely environmental efficiency of investments in renewable energy. The analysis is undertaken at macroeconomic level for several countries in Europe; some of them are member states of European Union and were observed over the period between 1990 and 2008. The method assumes the study of the econometric models based on Kaya identity, an equation widely used in studies regarding emissions, trends and future emissions scenarios. Working with time series and cross-sectional data, a panel data approach is needed. Indicators like energy intensity, CO2 intensity and gross domestic product per capita and per unit of investment are used, as they establish a connection between effects and efforts (a prerequisite for studying the efficiency). A novelty of this research lies in the calculation of environmental efficiency index after an original method proposed by authors. The findings of this analysis reveal that there are both countries with high and low environmental efficiency of investments in renewable energy.

Suggested Citation

  • Cicea, Claudiu & Marinescu, Corina & Popa, Ion & Dobrin, Cosmin, 2014. "Environmental efficiency of investments in renewable energy: Comparative analysis at macroeconomic level," Renewable and Sustainable Energy Reviews, Elsevier, vol. 30(C), pages 555-564.
    • Handle: RePEc:eee:rensus:v:30:y:2014:i:c:p:555-564
    DOI: 10.1016/j.rser.2013.10.034
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1364032113007338
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.rser.2013.10.034?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Carmen Nadia CIOCOIU, 2011. "Integrating Digital Economy And Green Economy: Opportunities For Sustainable Development," Theoretical and Empirical Researches in Urban Management, Research Centre in Public Administration and Public Services, Bucharest, Romania, vol. 6(1), pages 33-43, February.
    2. Al-mulali, Usama & Binti Che Sab, Che Normee, 2012. "The impact of energy consumption and CO2 emission on the economic and financial development in 19 selected countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(7), pages 4365-4369.
    3. Claudiu CICEA & Jonel SUBIC & Corina PIRLOGEA, 2010. "Considerations regarding investments efficiency in agriculture," Economia. Seria Management, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 13(2), pages 321-331, December.
    4. Al-mulali, Usama & Binti Che Sab, Che Normee, 2012. "The impact of energy consumption and CO2 emission on the economic growth and financial development in the Sub Saharan African countries," Energy, Elsevier, vol. 39(1), pages 180-186.
    5. Jaraitė, Jūratė & Di Maria, Corrado, 2012. "Efficiency, productivity and environmental policy: A case study of power generation in the EU," Energy Economics, Elsevier, vol. 34(5), pages 1557-1568.
    6. Felicia Alina DINU, 2012. "Industry Risk: Main Factor of the Investment Decision Sustainability," Economia. Seria Management, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 15(2), pages 346-353, December.
    7. Ang, B. W., 1999. "Is the energy intensity a less useful indicator than the carbon factor in the study of climate change?," Energy Policy, Elsevier, vol. 27(15), pages 943-946, December.
    8. Jung, Seok & An, Kyoung-Jin & Dodbiba, Gjergj & Fujita, Toyohisa, 2012. "Regional energy-related carbon emission characteristics and potential mitigation in eco-industrial parks in South Korea: Logarithmic mean Divisia index analysis based on the Kaya identity," Energy, Elsevier, vol. 46(1), pages 231-241.
    9. Andreea Lorena RADU & Maria CARACOTA DIMITRIU, 2011. "EU Funded Projects: from Financial to Economic Analysis," Economia. Seria Management, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 14(1), pages 156-176, June.
    10. Mariana VUTA, 2011. "Ecological Fiscal Policy: between Theory and Practice," Economia. Seria Management, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 14(2), pages 399-405, December.
    11. Sueyoshi, Toshiyuki & Goto, Mika, 2011. "Methodological comparison between two unified (operational and environmental) efficiency measurements for environmental assessment," European Journal of Operational Research, Elsevier, vol. 210(3), pages 684-693, May.
    12. Wang, Chunhua, 2013. "Differential output growth across regions and carbon dioxide emissions: Evidence from U.S. and China," Energy, Elsevier, vol. 53(C), pages 230-236.
    13. Lean, Hooi Hooi & Smyth, Russell, 2010. "CO2 emissions, electricity consumption and output in ASEAN," Applied Energy, Elsevier, vol. 87(6), pages 1858-1864, June.
    14. Kumar Mandal, Sabuj & Madheswaran, S., 2010. "Environmental efficiency of the Indian cement industry: An interstate analysis," Energy Policy, Elsevier, vol. 38(2), pages 1108-1118, February.
    15. Zhang, F. Q. & Ang, B. W., 2001. "Methodological issues in cross-country/region decomposition of energy and environment indicators," Energy Economics, Elsevier, vol. 23(2), pages 179-190, March.
    16. Cuesta, Rafael A. & Lovell, C.A. Knox & Zofío, José L., 2009. "Environmental efficiency measurement with translog distance functions: A parametric approach," Ecological Economics, Elsevier, vol. 68(8-9), pages 2232-2242, June.
    17. Silveira, Jose Luz & Lamas, Wendell de Queiroz & Tuna, Celso Eduardo & Villela, Iraides Aparecida de Castro & Miro, Laura Siso, 2012. "Ecological efficiency and thermoeconomic analysis of a cogeneration system at a hospital," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(5), pages 2894-2906.
    18. Zofio, Jose L. & Prieto, Angel M., 2001. "Environmental efficiency and regulatory standards: the case of CO2 emissions from OECD industries," Resource and Energy Economics, Elsevier, vol. 23(1), pages 63-83, January.
    19. Soyhan, Hakan S., 2009. "Sustainable energy production and consumption in Turkey: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 13(6-7), pages 1350-1360, August.
    20. Scandurra, Giuseppe & Romano, Antonio Angelo, 2011. "The investments in renewable energy sources: do low carbon economies better invest in green technologies?," MPRA Paper 34216, University Library of Munich, Germany.
    21. Corina PIRLOGEA, 2012. "Investments For A Sustainable Energy Future," Business Excellence and Management, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 2(1), pages 21-30, March.
    22. Mihai BOTEZATU, 2010. "Capital investments in the context of time factor," Economia. Seria Management, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 13(1), pages 106-118, June.
    23. Song, Malin & An, Qingxian & Zhang, Wei & Wang, Zeya & Wu, Jie, 2012. "Environmental efficiency evaluation based on data envelopment analysis: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(7), pages 4465-4469.
    24. ., 2007. "Introduction and overview," Chapters, in: International Economic Law and the Digital Divide, chapter 1, Edward Elgar Publishing.
    25. Morilla, Carmen Rodriguez & Diaz-Salazar, Gaspar Llanes & Cardenete, M. Alejandro, 2007. "Economic and environmental efficiency using a social accounting matrix," Ecological Economics, Elsevier, vol. 60(4), pages 774-786, February.
    26. Pani, Ratnakar & Mukhopadhyay, Ujjaini, 2013. "Management accounting approach to analyse energy related CO2 emission: A variance analysis study of top 10 emitters of the world," Energy Policy, Elsevier, vol. 52(C), pages 639-655.
    27. Bradley K. Googins & Philip H. Mirvis & Steven A. Rochlin, 2007. "Introduction," Palgrave Macmillan Books, in: Beyond Good Company, pages 1-9, Palgrave Macmillan.
    28. Florin TACHE, 2011. "Developing an Integrated Monitoring and Evaluation Flow for Sustainable Investment Projects," Economia. Seria Management, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 14(2), pages 380-391, December.
    29. Cansino, J.M. & Cardenete, M.A. & Ordóñez, M. & Román, R., 2012. "Economic analysis of greenhouse gas emissions in the Spanish economy," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(8), pages 6032-6039.
    30. Antonio Angelo Romano & Giuseppe Scandurra, 2011. "The Investments in Renewable Energy Sources: Do Low Carbon Economies Better Invest In Green Technologies?," International Journal of Energy Economics and Policy, Econjournals, vol. 1(4), pages 107-115.
    31. Welch, Eric & Barnum, Darold, 2009. "Joint environmental and cost efficiency analysis of electricity generation," Ecological Economics, Elsevier, vol. 68(8-9), pages 2336-2343, June.
    32. Kaygusuz, Kamil, 2009. "Energy and environmental issues relating to greenhouse gas emissions for sustainable development in Turkey," Renewable and Sustainable Energy Reviews, Elsevier, vol. 13(1), pages 253-270, January.
    33. Ian Thynne & Burns, 2007. "Editorial Introduction," Asia Pacific Journal of Public Administration, Taylor & Francis Journals, vol. 29(1), pages 1-2, June.
    34. Vasiliki DELITHEOU, 2011. "Foreign Direct Investment and its Role in the Development of Greece," Economia. Seria Management, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 14(1), pages 120-131, June.
    35. Duro, Juan Antonio & Padilla, Emilio, 2006. "International inequalities in per capita CO2 emissions: A decomposition methodology by Kaya factors," Energy Economics, Elsevier, vol. 28(2), pages 170-187, March.
    36. Peroni, Chiara, 2012. "Environmental efficiency indices: towards a new approach to green-growth accounting," MPRA Paper 38671, University Library of Munich, Germany, revised 27 Apr 2012.
    37. Bakhoda, Hossein & Almassi, Morteza & Moharamnejad, Naser & Moghaddasi, Reza & Azkia, Mostafa, 2012. "Energy production trend in Iran and its effect on sustainable development," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(2), pages 1335-1339.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Woo, Chungwon & Chung, Yanghon & Chun, Dongphil & Seo, Hangyeol & Hong, Sungjun, 2015. "The static and dynamic environmental efficiency of renewable energy: A Malmquist index analysis of OECD countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 47(C), pages 367-376.
    2. Sueyoshi, Toshiyuki & Yuan, Yan & Goto, Mika, 2017. "A literature study for DEA applied to energy and environment," Energy Economics, Elsevier, vol. 62(C), pages 104-124.
    3. Xiaoxia Shi & Haiyun Liu & Joshua Sunday Riti, 2019. "The role of energy mix and financial development in greenhouse gas (GHG) emissions’ reduction: evidence from ten leading CO2 emitting countries," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 36(3), pages 695-729, October.
    4. Dong, Feng & Li, Xiaohui & Long, Ruyin & Liu, Xiaoyan, 2013. "Regional carbon emission performance in China according to a stochastic frontier model," Renewable and Sustainable Energy Reviews, Elsevier, vol. 28(C), pages 525-530.
    5. Ramli, Noor Asiah & Munisamy, Susila, 2015. "Eco-efficiency in greenhouse emissions among manufacturing industries: A range adjusted measure," Economic Modelling, Elsevier, vol. 47(C), pages 219-227.
    6. Zhou, P. & Ang, B.W. & Wang, H., 2012. "Energy and CO2 emission performance in electricity generation: A non-radial directional distance function approach," European Journal of Operational Research, Elsevier, vol. 221(3), pages 625-635.
    7. Shahzad, Syed Jawad Hussain & Kumar, Ronald Ravinesh & Zakaria, Muhammad & Hurr, Maryam, 2017. "Carbon emission, energy consumption, trade openness and financial development in Pakistan: A revisit," Renewable and Sustainable Energy Reviews, Elsevier, vol. 70(C), pages 185-192.
    8. Yannan Zhou & Jixia Huang & Mingxiang Huang & Yicheng Lin, 2019. "The Driving Forces of Carbon Dioxide Equivalent Emissions Have Spatial Spillover Effects in Inner Mongolia," IJERPH, MDPI, vol. 16(10), pages 1-14, May.
    9. Halkos, George E. & Tzeremes, Nickolaos G., 2013. "A conditional directional distance function approach for measuring regional environmental efficiency: Evidence from UK regions," European Journal of Operational Research, Elsevier, vol. 227(1), pages 182-189.
    10. Sheinbaum, Claudia & Ruíz, Belizza J. & Ozawa, Leticia, 2011. "Energy consumption and related CO2 emissions in five Latin American countries: Changes from 1990 to 2006 and perspectives," Energy, Elsevier, vol. 36(6), pages 3629-3638.
    11. Wang, Shaojian & Li, Guangdong & Fang, Chuanglin, 2018. "Urbanization, economic growth, energy consumption, and CO2 emissions: Empirical evidence from countries with different income levels," Renewable and Sustainable Energy Reviews, Elsevier, vol. 81(P2), pages 2144-2159.
    12. Awad, Atif, 2019. "Does economic integration damage or benefit the environment? Africa's experience," Energy Policy, Elsevier, vol. 132(C), pages 991-999.
    13. Jean Vasile Andrei & Mihai Mieila & Mirela Panait, 2017. "The impact and determinants of the energy paradigm on economic growth in European Union," PLOS ONE, Public Library of Science, vol. 12(3), pages 1-17, March.
    14. Muhammad, Bashir, 2019. "Energy consumption, CO2 emissions and economic growth in developed, emerging and Middle East and North Africa countries," Energy, Elsevier, vol. 179(C), pages 232-245.
    15. Nasre Esfahani, Mohammad & Rasoulinezhad, Ehsan, 2016. "Revisiting the relationships between non-renewable energy consumption, CO2 emissions and economic growth in Iran," MPRA Paper 71124, University Library of Munich, Germany.
    16. Abdulrasheed Zakari & Vincent Tawiah, 2019. "Impact of Electricity Consumption, Financial Development, Trade Openness on CO2 Emissions: Evidence from Nigeria," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 4, pages 143-157.
    17. Sedef E. Kara & Mustapha D. Ibrahim & Sahand Daneshvar, 2021. "Dual Efficiency and Productivity Analysis of Renewable Energy Alternatives of OECD Countries," Sustainability, MDPI, vol. 13(13), pages 1-14, July.
    18. Al-mulali, Usama & Tang, Chor Foon & Ozturk, Ilhan, 2015. "Estimating the Environment Kuznets Curve hypothesis: Evidence from Latin America and the Caribbean countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 50(C), pages 918-924.
    19. Chen, Nengcheng & Xu, Lei & Chen, Zeqiang, 2017. "Environmental efficiency analysis of the Yangtze River Economic Zone using super efficiency data envelopment analysis (SEDEA) and tobit models," Energy, Elsevier, vol. 134(C), pages 659-671.
    20. Saboori, Behnaz & Sapri, Maimunah & bin Baba, Maizan, 2014. "Economic growth, energy consumption and CO2 emissions in OECD (Organization for Economic Co-operation and Development)'s transport sector: A fully modified bi-directional relationship approach," Energy, Elsevier, vol. 66(C), pages 150-161.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:rensus:v:30:y:2014:i:c:p:555-564. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/600126/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.